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Moving to Phnom Penh Guide for Expats

The warm hospitality of the residents is one of the reasons why moving to Phnom Penh is attractive for expats. The locals of Phnom Penh are very friendly, making it simple to establish new friends.

When relocating to Phnom Penh or any other place, it’s important to prepare beforehand so that you’ll know what to expect when you reach your target destination. It makes it easier to adjust to your new environment, maximize your stay, and minimize certain hassles.

If you have any questions or want to invest as an expat or high-net-worth individual, you can email me (advice@adamfayed.com) or use these contact options.

What to Know Before Moving to Phnom Penh

Climate

Tropic climate makes Phnom Penh hot year-round. May to October is the rainy season, culminating in August when temperatures are maximum. From November through February, humidity and rainfall are decreased, making it the best time of year, but temperatures remain about 30°C. The Mekong river provide a cooling air, although the city’s heat can be cruel for newcomers.

Does it flood?

The large and slow Mekong River, which flows through Phnom Penh, is distinguished by its shallow riverbed. Rapid and strong downpours throughout the rainy season cause the river’s flow to reverse, flooding the surrounding areas which somehow benefits agriculture.

Inside the city limits, however, this has fewer positive effects. Building in different parts of the city was done so quickly that drainage systems weren’t given enough thought. As a result, many city streets flood whenever there is a significant amount of rain.

Apartment/Housing

Rentals

Prior to renting in Phnom Penh, expatriates should examine the rental market. As the city becomes more international, rental rates rise. There are still ways to get good prices if you’re flexible in your neighborhood and willing to negotiate with landlords.

Local Cambodian citizens can bargain in their native language and understand local norms and culture, which can help them get better rental arrangements. Ask your employer for advice on getting a better apartment rental rate. It’s best to reject the first offer when buying in Cambodia because practically everything is negotiable.

Can foreigners own real estate in Phnom Penh?

According to law, there are two main ways to acquire real estate in Phnom Penh: by purchasing a condo unit with a strata title or by forming a partnership with a Cambodian legal entity that’s owned at least 51% by local citizens. A valid passport and visa are usually enough for expat property buyers.

If you’re buying an apartment, the per-square-meter price can reach nearly $1,500 to $2,290. Such cost will largely be dependent on where the property is located.

Since Phnom Penh is a business and entertainment hub, renting is a popular accommodation option too. Certain neighborhoods have higher rental rates, though. A two-bedroom apartment near the Russian Market costs $500 to $800 per month. Rent for a one-bedroom serviced apartment in BKK 1 is roughly $1,200 per month on average. In general, an apartment can be rented for about $300 to $495 each month.

Use knowledgeable real estate brokers to negotiate the local real estate market. To that end, they might be able to recommend neighborhoods with good schools, conduct title searches, and explain the buying/selling process along with its tax and legal implications.

Transportation

Can foreigners drive in Phnom Penh?

Due to high import tariffs and gas prices, buying an automobile in Phnom Penh is not advisable. Note that an International Driver’s License is invalid in Cambodia, which might cause problems for expats who pay fines instead of getting a local license. This procedure is risky because it can affect insurance coverage as health and travel insurance companies rarely cover road accident claims involving unlicensed drivers.

Fortunately, you can apply for one of three non-industrial driver’s licenses: the A1 license for motorcycles and scooters 49cc to 125cc, the A2 license for motorcycles over 125cc, or the B license for passenger vehicles under nine passengers (this includes SUVs and motorcycles too).

You can apply for a Phnom Penh driver’s license yourself or through an agent. Documentation required to complete the process: A valid passport and visa, five passport-sized pictures, your home country’s driver’s license, and a translated copy if it’s not in English or French. You must pay a $35 application fee, excluding agency expenses. Driver’s licenses in Cambodia take 24 hours to process and last one year.

Are there expat communities in Phnom Penh?

An active expatriate community in Phnom Penh offers networking and assistance through clubs, groups, and social activities. Newcomers can integrate and make friends in expat-friendly neighborhoods at these events.  Online forums and social media groups allow expats to openly share stories, advice, and information on city life.

Best places in Phnom Penh for expats

Phnom Penh is Cambodia’s most livable city because it has both thriving commercial and leisure zones and safe neighborhoods that are suitable for expat families. Foreign diplomats and wealthy business professionals prefer to live in the capital city’s gated enclaves, protected apartment buildings, and private villas.

Boeung Kang Keng 1

Boeung Kang Keng 1 (BKK1) has established itself as the premier expat neighborhood in Cambodia during the past two decades. This section of Phnom Penh used to be home to many non-governmental organization (NGO) offices, but fast urban renewal has caused dramatic transformations.

Where formerly there were lush lanes lined with huge villas, modern apartment complexes, chic hotels, and chain coffee shops, fast food joints, restaurants, and pubs have sprung up in their stead.

Some expats are saddened by the fact that BKK1 has become Phnom Penh’s first example of gentrification and the neighborhood has lost much of its original charm. However, it still draws in expats, particularly those with larger budgets or those wanting the familiar conveniences of Western living, which are abundant in the new condos. Rising rents, however, have prompted some Phnom Penh residents to go elsewhere.

Expats are also employed by the many multi-national enterprises and international organizations based in BKK1. The neighborhood benefits from having both the United Nations and foreign embassies located there. Thus, BKK1 housing is more expensive than elsewhere, with a one-bedroom condo possibly costing over $2,000. Specialized real estate agents can help you get the greatest offers.

Sisowath Quay

moving to Phnom Penh best places

Sisowath Quay, at the meeting of the Mekong and Tonlé Sap Rivers, offers a spectacular panorama of Phnom Penh’s scenic waterfront. Tourists and foreign residents alike now frequent this promenade because of its picturesque riverbank location. Sisowath Quay is a beautiful place to take a stroll first thing in the morning and relax before starting the day.

It’s been said that Boeung Kang Keng 1 is Phnom Penh’s most beautiful neighborhood, yet beauty is subjective. Evenings by the river are especially beautiful which made some foreigners to fall in love with the area. There’s also a National Museum you can frequent if you’re into that.

Rooms with a view are typically more expensive (as is the case everywhere else in the world), yet the other rooms are also tastefully designed and comfortable. Furnished one-bedroom condos might be rented for over $700 per month if you’re in the market for temporary housing.  A studio flat is a more cost-effective housing alternative, with monthly rents of $350 and up.

Tuk-tuks are often overpriced and difficult to haggle down, and the pavements are teeming with people, all of which discourage some foreigners.

Central Market

A trip to Phnom Penh wouldn’t be complete without checking out the city’s famous Central Market, according to many travelers from abroad. In this Art Deco architectural marvel, which takes the form of a massive dome, you may purchase anything from a traditional scarf to an amazing piece of silverwork. When going grocery shopping, apparel shopping, or electronics shopping, don’t forget to pack your haggling talents.

The Central Market area is the commercial hub of the city and has just about anything you would want to buy. The area’s high demand has resulted in somewhat high rental prices. More than $500 a month can be spent on a studio apartment. These rents are generally viewed as fair because of the time and money saved by not having to drive everywhere.

Tonle Bassac

While some may lament the loss of BKK1’s identity, others may see the benefits that have accrued to the city as a whole. Tonle Bassac is one area that has taken in part of the surplus from its neighbor. A delightful collection of boutique pubs, restaurants, and stores can be found along the area’s Bassac Lane.

Tonle Bassac is not quite as transformed as BKK1 despite the fact that construction is ongoing there, as is the case throughout Phnom Penh. The majority of the apartment complexes and condos in this area play it low key. Tonle Bassac, in contrast to BKK1, has a number of modest villas, albeit they are becoming increasingly hard to find and expensive to maintain.

Toul Tom Poung

Toul Tom Poung is quickly becoming one of Phnom Penh’s most popular expat neighborhoods, drawing people from BKK1 and elsewhere in the city.

Despite being home to the popular Russian Market, Toul Tom Poung has often been overlooked because of its relative isolation in comparison to the rest of Phnom Penh. A small number of coffee shops existed in the region until recently, and there were hardly no businesses open late that catered to the expat community. Therefore, the bold were the ones who made the move to establish themselves there.

Now in the present day, Toul Tom Poung has become a hip and happening neighborhood. Attractive lower rents have resulted in a proliferation of new enterprises, from cafes to eateries to nightclubs, with what seems like a new one opening every week.

Additionally, the cheaper housing has attracted a younger expat community. Apartment buildings have sprung up quickly as a result of developers catching on to the trend. Phnom Penh’s real estate market is so fluid that experts can already pinpoint where the next hotspot will be.

Daun Pen

Phnom Penh’s old town, Daun Penh, stretches along the Tonle Sap River and includes both intact colonial buildings and cutting-edge skyscrapers. 

Daun Penh’s bustling side streets are lined with historic flat house and store house buildings that have been converted into apartments for rent. The restaurants and nightlife in this region are well-known for their excellence. Daun Penh also acts as a major commercial hub, with numerous shops and markets (including the world-famous Central Market) to choose from.

Daun Penh stands apart from the rest of Phnom Penh since it mostly serves locals, so it can be difficult to find convenience stores selling foreign luxury or restaurants serving different international cuisines. However, Phnom Penh’s small size means that if you need access to a wider variety of services, the trendy neighborhoods of BKK1 or Tonle Bassac are only a quick five- or 10-minute drive away.

For expatriates, Daun Penh is a great alternative because rents are significantly lower and many landlords have made the effort to update their units to Western standards.

As Phnom Penh’s core business area (CBD), Daun Penh is home to several of the city’s finest office buildings and other commercial real estate opportunities as well.

Other Areas

Living in Phnom Penh’s suburbs has several benefits. First, there are cheaper housing possibilities than in the city center. Those in search of peace and quiet will find that suburban life provides just that.  Suburban neighborhoods offer larger homes and more green space too, bringing people closer to nature. You’ll find a vibrant feeling of community and convenient access to stores and markets in these areas.

Even if you settle on the suburbs for family life, you won’t be too far from some well-regarded hospitals and international schools.

Schools

The Cambodian school system has changed multiple times, from teaching literature, religion, and practical skills like carpentry and crafts, to incorporating math and science based on the Western model.

All students must complete a 12-year general education system under the 1996 revisions. Primary school lasts six years or grades 1–6, followed by secondary education for another six or grades 7–12.  Students can pursue a four- or five-year university degree after.

The public school system in Cambodia is governed by the government. Private schools run by different nationalities and faiths, such as the French, the English, the Muslims, and the Christians, educate a sizeable number of expat children.  These private schools cater to expat families’ educational needs.

Many international schools in Phnom Penh follow the American, British, or French educational systems. Accredited international schools will be at a record high in 2023. Some of the worst schools in Cambodia use names that imply they are international or American or British when in fact their courses have little in common with their names.

If at all feasible, you should keep your child away from the local schools due to their subpar quality. Because of the difficulty of learning Khmer, most foreign children are not allowed to enroll in public schools in Cambodia.

Retiring in Phnom Penh

To retire in Phnom Penh, all you need to do is complete out a form and get an Ordinary visa good for one month when you arrive at the airport. Easy to extend for a year, this visa allows unlimited entries and exits. This extension can be obtained by visiting a local travel agency, which will handle the paperwork for you for nearly $300.

Cambodia is an attractive option because, in contrast to several neighboring countries, it does not have rigorous age or income limits for visa extensions. As long as you respect Cambodian culture, people, and laws, you are welcome to retire here.

English is Phnom Penh’s most generally spoken second language, making it easy to conduct basic activities upon arrival. A passport, visa, and address are enough to open a bank account. Many large local, regional, and international banks are in Phnom Penh. The city has many ATMs, and international transfers to and from Cambodia are easy.

A local SIM card can be easily obtained from any of the top three telecommunications providers. Upon presenting your valid passport, you will be issued a free SIM card and additional calling, texting, and data allowances.

When it comes to staying connected online, many international residents are forgoing the construction of home Wi-Fi networks or traditional landline connections. Since 4G LTE mobile data is now available on most networks at surprisingly low prices, it has surpassed fixed broadband as the preferred method of online access.

lifestyle in moving to phnom penh

Lifestyle

For retirees in Phnom Penh, the opportunity to live your ideal lifestyle is a great perk.

There are several great local coffee shops and worldwide brands like Starbucks, where you can get coffee, pastries, and free Wi-Fi to start your day.

Dining in Phnom Penh is also diversified, with popular chains like Dairy Queen and KFC. There are international and local fine dining restaurants too that offer affordable and high-quality cuisine. A pair of meals at one of the city’s best restaurants may cost under $50, including a bottle of wine and a decent tip.

Regarding shopping, expats in Phnom Penh have diverse preferences. Some opt to visit traditional Khmer markets like Central Market for fresh produce, while others gravitate towards the city’s modern shopping centers, which offer Western-style supermarkets.

Popular choices for meeting new people and expanding professional connections in Phnom Penh include Rotary. The most popular way to meet other expats is in one of the city’s many wine bars or expat-friendly pubs.

Gym memberships at popular gyms are popular among fitness enthusiasts. These memberships usually cost less than $1,000 a year and include tennis courts and pools. Phnom Penh has numerous world-class golf courses with $20–$75 green fees, making it a popular activity for budget-conscious expats.

Following an invigorating workout, many expats indulge in a visit to one of the city’s professional health spas, offering saunas and skilled masseuse therapists. And for those seeking spiritual solace, there are numerous free Buddhist meditation classes held throughout the week.

Costs of Living in Phnom Penh

Phnom Penh has low daily living costs compared to other Southeast Asian capitals. Retirees can afford rental costs, electricity bills, grocery shopping, dining out, and socializing.

For a four-person family, the monthly budget is around $2,270 on average without rent. An individual needs almost $646. The rent can cost $300 to $495 per month depending on location, while the price per square meter is around $1,491.

Healthcare

Phnom Penh has multiple clinics that fulfill international standards for basic medical care and stabilization, but its healthcare and training facilities may not. Foreigners are often moved from Cambodian hospitals to Thailand for more trustworthy healthcare in serious medical emergencies.

Phnom Penh pharmacies sell painkillers, antihistamines, and insect repellents, although they may not be your usual brands. For local purchases, check the expiration date as outdated prescriptions may still be on the shelf.

You must have comprehensive medical insurance that covers emergencies in Phnom Penh. Before moving to the city, get vaccinations for hepatitis A and B, diphtheria, tetanus, polio, TB, and Typhoid.

Is Phnom Penh safe?

Despite the city’s enormous growth over the previous decade, safety and security are still major problems in Phnom Penh. Sadly, cases of bag snatching from tourists and foreigners are not uncommon. Always use caution.

Be wary of begging in Phnom Penh. Beggars are known to frequent eateries with outside seating. Staying inside the restaurant is the safest bet for avoiding such situations.

Young children frequently beg in the city, stating they need the money for school. Sadly, adults are often behind this practice because they stand to gain financially from the children’s participation. Organized beggars exploit tourists’ sympathy and riches. Avoid giving youngsters money, especially at odd hours, to discourage the behavior and protect at-risk kids. Because of your kindness, they could feel more inclined to venture out at hours when they are more vulnerable to harm.

Transportation in Phnom Penh is safe but precautions are advised. To minimize confusion, make sure the tuk-tuk or taxi driver knows your destination and agrees on the fee before getting in.

Taxi and tuk-tuk drivers may shout for business while walking throughout Phnom Penh, especially in tourist areas. Albeit not dangerous, this behavior can be unsettling. Avoid these busy locations and choose quieter routes in these regions of the city to avoid such scenarios.

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